“People are especially proud of the Isonzo battles, but they do not shut their eyes to the uncertain prospects of a successful Austrian offensive. They really consider that Austria has gained her war aims, and the old Emperor described the military situation to Frau Kathi Schratt by saying that the war was in many respects like a game of tarock, in which the winner was not allowed to cease playing because the losers insisted upon him going on with the game so that they might have their revenge. Matters at first had been to the advantage of our enemies: the Russians had overrun Galicia, the Serbians had defeated the Austrians at Belgrade, and the French had looked upon the retreat from the Marne as a great success. Now, however, the war was all in favour of Germany and Austria, and therefore our opponents did not want to call a truce just yet.
“If this comparison which the venerable old gentleman has borrowed from his favourite game of cards is correct, the war will not be over until one side has nothing further to stake, and the decision will be brought about by that side whose human and financial resources shall last longest.
“Banking circles, of course, view the financial situation with the utmost gravity, but the general public—in spite of the high prices ruling here, and in spite of the great want of food which is much more noticeable than with us—regard matters a great deal more serenely. This is simply due to the greater optimism so characteristic of the Austrians, whose motto is: ‘Life is so short, and death so very, very long.’ They prefer to assign to future generations the worries which would spoil their sublunary existence.
“The present Cabinet is looked upon as weak and mediocre. The old Emperor clings to Count Stürgkh because of the extensive use to which the latter puts the celebrated paragraph 14 of the Constitution, by which Parliament is eliminated altogether, and which provides the Government with every conceivable liberty of action. The all-powerful Tisza gives his support to Count Stürgkh just because of his weakness. Hence the attempt to replace the latter by Prince Hohenlohe, the present Minister of the Interior, is beset with much difficulty. The Emperor wants to avoid a break with Tisza at all costs. This state of things makes people feel very worried. The strain in the relations between Austria and Hungary has greatly increased since my last visit, whereas the friendly feelings for Germany are now more pronounced than ever.
“Our Kaiser everywhere enjoys an unexampled veneration. Within the next few days he will be made the subject of great celebrations in his honour. Although the tickets of admission are sold at enormous prices, even General v. Georgi, the Chief of the National Defence Organization—whom I met last night—did not succeed in obtaining a box, notwithstanding his high connexions. This morning the well-known member of the Hofburg Theatre, Herr Georg Reimers, read to me two poems dedicated to the Kaiser which he is going to recite that night, and I feel bound to say that it can hardly be an unmixed pleasure to the members of the court to witness this act of enthusiastic homage paid to our ruler.
“The Roumanian question, particularly in its bearing on the food supply, is regarded by people who are able to judge with great anxiety. It is believed that the only thing to do is to send to Bucharest experienced men connected with the supply and the distribution of food who must be properly authorized to purchase as much grain as possible for ourselves and for our allies.
“The big Austro-German Zollverein—or by whatever other name it is intended to describe the proposed customs union—is looked upon with very mixed feelings. Last night Baron Skoda (the Austrian Krupp) explained to me after a dinner given at his house, with the lively consent of members of the court and of the big manufacturers, that the Austrian interests might indeed profit from such a union with the Balkan States, but that it would be better that Germany should remain an outsider for a period of fifteen years. This is evidently a case of timeo Danaos, et dona ferentes, and people feel that Austria, owing to her economic exhaustion, would be easily absorbed by Germany after the conclusion of the war. The Hungarians, naturally, view matters from a different angle, not only because the Hungarian farmers would like to sell their grain to Germany free of any duty, and because industry counts for very little in their country, but also because they dislike the Austrians.
“ ... I also dined with Count Tisza. He is a purely Magyar politician who regards the international situation from his Hungarian point of view, and in conformity with his Magyar inclinations. He is evidently a strong if obstinate character, and he does not impress me as a man who will give up his post without a protest. He, too, thinks the real war aims of Austria-Hungary have been accomplished. Serbia is crushed, Galicia liberated, and Russian supremacy in the Balkans—formerly viewed with so much apprehension—is a thing of the past. All that is wanting now is to bring the Italian campaign to a successful conclusion and the war may be regarded as over as far as Austro-Hungarian interests are involved.
“Both Tisza and the Austrian society showed strong symptoms of an Anglophile leaning. Frau Schratt, who in such matters simply re-echoes the views of the old Emperor, seemed very pro-English, and had something to say about ‘German atrocities.’
“I mention these facts because I cannot help thinking that, notwithstanding the war, some friendly threads must have been spun across from England to Austria.”